A truely challenging scenario. I played the first time and lost (as the Germans). The second time I only lost one tank and had 18 casualties.
My tactic was like others, to forfeit the first flag. I had my art. spotter aim for the hill, which eventually dislodged most of the riding infantry. I kept my infantry in the woods to prevent entry in the town, with some HMGS in the town itself.
I allowed the first wave of Russian armor to pass over the hill when I launched a flanking attack with my Panthers from the woods of the German right flank. The key is distance - my first game I tried the same thing but kept creeping up closer, negating their superior optics.
At a safe distance, and in force the panthers made quick work of 2nd wave of tanks along the ridge. Between the artillery attack and my Panthers, the whole russian assault broke down. However I did let a few through. Further back in the woods across the road I had the two AT guns waiting, and as the armor started heading towards the town, I hit them in the rear and knocked them out.
Russian infantry was annhilated in the woods, so they never made it to the town. Some additional units started breaking through the German left flank, but by then my tigers were on the way (my mistake last time was to expose them, so they got killed while getting into position). This time I took the longer, less visible route and was able to push back the few intruders that made it across the road.
By the end, I launched a counter attack a retook the hill - all Russian armor had been destroyed and infantry was in a panic. The key - keep the panzers at a safe distance, and use them enmasse to achieve devistating results.